$38 million tranche settled June 14; remainder slated for September
By Jennifer Chiou and Devika Patel
New York, June 21 - Globalstar Inc. announced details on its $50 million private placement of 5% convertible senior notes due Dec. 14, 2021 with Lazard Capital Markets LLC as placement agent. The initial $38 million tranche settled on June 14.
As reported, Thermo Funding Co. LLC was among the investors, and the remaining $12 million is anticipated to be sold at the same terms over a three-month period, with settlement on Sept. 15.
The notes are convertible into common stock at an initial conversion price of $1.25 per share, representing a 13.64% premium to the $1.10 closing share price on June 13.
Investors also will receive total warrants for 20 million shares, which are each exercisable at $1.25 for five years.
The financing was fully subscribed for by current Globalstar investors, executive chairman Jay Monroe said in a news release.
Proceeds are expected to be used to meet the company's capital expenditure needs, including the procuring and deploying of its second-generation satellite constellation and other operating costs.
Based in Covington, La., Globalstar is a provider of mobile voice and data communications services via satellite.
| Issuer: | Globalstar Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $50 million
|
| Maturity: | Dec. 14, 2021
|
| Coupon: | 5%
|
| Conversion price: | $1.25
|
| Conversion premium: | 13.64%
|
| Warrants: | For 20 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.25
|
| Agent: | Lazard Capital Markets LLC
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| Investor: | Thermo Funding Co. LLC
|
| Settlement dates: | June 14 (for $38 million), Sept. 15 (for $12 million)
|
| Stock symbol: | Nasdaq: GSAT
|
| Stock price: | $1.19 at close June 14
|
| Market capitalization: | $386.61 million
|
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